Tech Mahindra Profit Declines 9.5%; Revenue in Line With Estimate
The company’s net profit declined while the topline was in line with analyst estimates.
Tech Mahindra Ltd., the information technology arm of the Mahindra Group, saw profits decline in the first quarter of financial year 2016-17. The number also fell short of the street estimate.
Net profit for the April-June quarter fell 9.5 percent to Rs 796.5 from Rs. 880.59 in the previous quarter, the company said in a filing on the Bombay Stock Exchange. This was lower than the Bloomberg consensus estimate of Rs 735.9 crore.
Revenue increased marginally by 0.5 percent sequentially to Rs 6,920.9 crore from Rs 6,883.7 crore. The consensus of analyst estimates tracked by Bloomberg was Rs 6,900.3 crore.
The dollar revenue increased 0.9 percent to Rs 1,031.5 crore from Rs 1,022.6 crore on a quarterly basis.
Earnings before interest and taxes slipped 1.9 percent in the first quarter to Rs 1,073 crore from Rs 1,094 crore in the quarter-ended March.
The EBIT margin contracted 40 basis points to 15.5 percent from 15.9 percent quarter-on-quarter.
Managing Director and Chief Executive Officer CP Gurnani said that the company did well in adding new large clientele and saw improved cash flow, according to the company’s press release.
Our business has done well on several parameters like large client growth, digital wins and strong cash flows. Automation and delivery excellence are two key focus areas for the year going forward.CP Gurnani, MD and CEO, Tech Mahindra